Rumours have been running rampant on the internet about Vista Energy Marketing not complying with the rules and regulations of the Federal Energy Regulatory Commission (FERC). This has led some people to prematurely draw the conclusion that Vista Energy is a scam that is operating under the PG&E label. There are a few facts and details, however, that never saw the light of day and now’s the time to bring them to light.
In the early stages of the company’s existence, the executives had applied for a Rate Based Certification from FERC. Every third party natural gas provider is required to obtain this certification in order to sell electricity in the United States. At that point in time, Vista Energy Marketing decided to not pursue the certification for the sale of electricity and sell natural gas only. The sale of natural gas does not require a Rate Based Certification.
Sometime later, it was unearthed that one of the early investors in Vista Energy Marketing had been given probation for getting involved in unlawful activities during the Enron energy crisis. FERC’s job is to protect consumers and ensure fair practices are observed within the energy industry. They therefore imposed a penalty on Vista Energy Marketing because they believed that the company had received a Rate Based Certification, which it had not.
As previously mentioned, Vista Energy had only APPLIED for the certification before deciding not to sell electricity. Even though the investor was removed from the executive body of Vista Energy Marketing and a Rate Based Certification had never been granted, the company was eventually forced to pay a fine with no admission of wrongdoing.
It is important to understand that violating FERC rules does not necessarily make a natural gas provider a scam or a phony business organization. Vista Energy Marketing is a certified and licensed third party natural gas distributor that operates within the framework of PG&E, but in this case, no violation was committed.